Shilayan Industries Limited

Consumer Cyclical — Auto Parts · NSE

₹17.33−₹0.24 (−1.37%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Shilayan Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shilayan Industries Limited, together with its subsidiaries, manufactures and trades in clutches and other automotive components in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Annual revenue₹805 Cr

How does it make money?

Turns over ₹805 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +48% while net margin moved -100% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+48%

Margin effect-100%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

29/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

12.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 7.1% to 13.1% over 3 years.
Cash generation is improving
Free cash flow is up 538% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Receivables growing faster than salesFinancial
Receivables up 85% against revenue up 48% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.22 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.1% to 13.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 10.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 85% against revenue up 48%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.8% CAGR
Latest reported year was 14.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 10.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹228 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹232 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-0.01

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

14.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

99.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

150.03%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹61 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

7.6%

Average

Average asset productivity

Operating Margin

5.4%

Average

Average margins

Net Margin

-0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.22

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

17.9 / 17.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹546 Cr	₹641 Cr	₹719 Cr	₹805 Cr	+13.8%
EBITDA	₹39 Cr	₹72 Cr	₹114 Cr	₹105 Cr	+39.6%
EBITDA Margin	7.1%	11.2%	15.8%	13.1%	—
PAT (Net Profit)	-₹152 Cr	-₹113 Cr	-₹105 Cr	-₹0 Cr	—
EPS	₹-11.4	₹-8.42	₹-7.86	—	—
ROCE	-2.7%	9.7%	21.0%	—	—
Total Debt	₹873 Cr	₹988 Cr	₹1,116 Cr	₹1,071 Cr	+7.0%
Free Cash Flow	₹36 Cr	₹62 Cr	₹77 Cr	₹228 Cr	+85.5%

🟢 Revenue has grown at 13.8% a year over 3 years.

🟢 EBITDA has grown at 39.6% a year over 3 years.

🟢 EBITDA Margin has risen from 7.1% to 13.1% over 3 years (+6.0 pts).

🔴 Total Debt has grown at 7.0% a year over 3 years.

🟢 Free Cash Flow has grown at 85.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹534 Cr

Total Liabilities

₹1,243 Cr

Cash & Equivalents

₹39 Cr

Operating Cash Flow

₹234 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

34.6%

Corporate Actions

Dividend Rate

₹26

Ex-Dividend Date

02 Jun 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

6 general

Shilayan Industries Limited (SETCO.BO) Stock Price, News, Quote & History

Yahoo! Finance Canada, 01 Oct

Shilayan Industries (BSE:505075) - Stock Analysis

Simply Wall Street, 12 Sept

Shilayan Industries Limited (SETCO.NS) stock price, news, quote and history

Yahoo Finance Australia, 09 Oct

Shilayan Industries Limited (SETCO.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 10 Oct

Setco Automotive Sells SASPL Stake for ₹185 Cr, Renames to Shilayan Industries

Whalesbook, 29 Mar

Setco Automotive Limited Schedules EGM for April 25, 2026 to Approve Major Divestment and Corporate Restructuring

scanx.trade, 03 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Shilayan Industries Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑